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The Complete Idiot's Guide to Global Economics by Gregory Rehmke, Craig Hovey

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Chapter 12
The Power to Create— Money, That Is
In This Chapter
• Checkable deposits and the fractional reserve banking system
• How countries use money to exchange goods and services
• America’s national deficit
In the previous chapter, we looked at the different values of money and its use as a medium of exchange. This chapter takes the discussions a step further and answers questions such as: How do we make money? How do we track the money that goes in and comes out of a country? We also take a look at the United States’ monetary deficit. Is there a way to reverse the deficit, and are competing countries with account surpluses a serious threat to the U.S. economy?

How Money Is Created

Sure, paper money and coins are printed and minted ...

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